Offer accepted, agent put house back on the market.

Blue_Monkey

At the start of October, we viewed a house and loved it. It's owned by a developer who was renovating it, nearly finished but needed floorboards sanding/varnishing, walls painted throughout, new kitchen and a few other bits... Asking price £295k. We offered £275k for the developer to drop tools and walk away and we'd finish it off. This was rejected saying he wanted £290k. We went back with £285k but for him to do the floors, walls and kitchen. This was accepted with the proviso we move quickly (we can and wanted to aim for 1 Dec).

10 days after the offer was accepted we met the vendor at the property (with the EA too) to apparently discuss the work to be done, ie paint colours, kitchen spec etc. Instead, however, he started spouting that he wanted £290k still... The EA was fuming that he was backtracking and very apologetic and frustrated...

We said no to the £290k, put our survey on hold and said we weren't moving any further forward until it was crystal clear what the £285k was going to get us and that we would make the detail of the work conditions of the sale and we wanted to meet round there again to talk through the work.

It took another 2 weeks for the vendor to reply and he came back with £285k for no work!

We said that's ridiculous, it's £275k for no work or £285k for the floors/walls/£5k kitchen.

EA is still v cross with him, know that we're good genuine buyers, no chain, mortgage in place, can move over Xmas etc etc etc. And they mentioned he'd said "£287k with £2k kitchen allowance" to which we said wasn't going to get us much and was an empty gesture really. In the meantime we'd arranged to back to the house tomorrow morning to take kitchen measurements to start getting quotes in.

So today, the EA said the vendor wants to net £285k regardless, so if we want a £5k kitchen, we'd need to go to £290k. We can afford this, and overall we'd prefer to wrap the kitchen cost up with the mortgage rather than paying cash later. But it's now the principle of it all (ie offer accepted, back-tracking etc) that's pee-ing us off... I didn't confirm on the price one way or the other but that we'd go to the house as planned tomorrow.

Tonight, I check my emails and there's a rightmove alert - lo and behold - featuring this house......... Asking price £295k, but the description mentions "The property has under gone some refurbishment which has given the home varnished floorboards, modern decor....." which is a total LIE. It's still half-finished with bare floors, plastered walls and a really old kitchen.

Is there anything I can say to the agent when we see them tomorrow to worry them in terms of the property misdescription rules? I suspect they'll simply change what's on rightmove... And I guess there's nothing I can do in terms of the fact we've had the letterfrom the EA stating offer accepted yet it's back on the market?

Geez. I realised this process was ambiguous but it really does need tightening up doesn't it?

G_M

Seems to me that you and the vendor have not really agreed a price/conditions. Still arguing/negotiating.

So putting the property back on the market could be a genuine attempt to find a more pliant buyer, or could be a negotiating ploy.

Either way, you don't seem to have a deal yet.

My advice?
* Either walk away now or
* pay the full amount he wants or
* take it in its current condition at whatever price you can agree

Do NOT agree a price with additional work (eg kitchen) as he will bodge it as cheaply/quickly as he can

Blue_Monkey

Thanks G_M. That does seem to be the crux of it...

We'd ask for £5k "cashback", either buy the kitchen ourselves and invoice the vendor or get him to write us a cheque... DH is a carpenter so he will fit it.

Why can't "offer accepted" mean just that?! Grr.

Ivana_Tinkle

Just wrote and then lost a long post saying exactly the same as G_M!

Would just add: I don't think you'll agree a fair price on the place in its current state - you'd be buying a property requiring complete redecoration and a new kitchen but the developer will still want to make (some of) his profit. Those two things don't really balance out!

I'd leave it for now, view other properties and perhaps arrange another viewing after Xmas when the house is finished.

Oh, and don't trust the EA as far as you can throw them.

Ivana_Tinkle

V v unlikely your mortgage company will agree to the "cashback" and your solicitor will be obliged to tell them about it.

budgetdiyer

I'd be walking away....maybe consider making a final offer of your original agreed offer but subject to exchange only taking place once the work is complete and inspected to your satisfaction. Making it clear this is non negotiable, take it or you walk away.

Blue_Monkey

That's interesting about the solicitors informing the mortgage co about any cashback - I didn't realise that, thank you for mentioning it. Would that be avoided if he engages/pays the kitchen company direct though we specify what we want/deal with the kitchen designer? He has a trade account with Magnet, we know a family friend builder who uses Howdens and we've seen a kitchen we like at Ikea so trying to understand the best way to finance that - that is, if we ever come to an agreement...

The EA seemed to think he was mad but I must remember they are working for him, not us.

The stubborn side of me doesn't want to give in to him (even though we can afford it) and wants to see if he will actually manage to sell it, not completed, for £285k.

thelem

The vendor has already changed an accepted offer for no good reason. What is to say he won't do the same again just as you are ready to exchange contracts (having spent thousands of pounds and weeks of your time on the purchase).

poppysarah

AFAIK If it's not got a kitchen at the moment it won't get a mortgage.

G_M

poppysarah wrote: »

AFAIK If it's not got a kitchen at the moment it won't get a mortgage.

Something like that though I believe by 'kitchen' it means a sink and a means of cooking (eg a gas supply but not necessarily a cooker.) Does not have to have a fully fitted modern kitchen!

Would that be avoided if he engages/pays the kitchen company direct though we specify what we want/deal with the kitchen designer?

I repeat my advice above:

Do NOT agree a price with additional work (eg kitchen) as he will bodge it as cheaply/quickly as he can

He has a trade account with Magnet

Big deal! Everyone and their son has a trade account.... this is not a reason to do anything.

tarkytarks

It sounds like you are in a great position for buying somewhere, so as others have said - confirm your offer via the EA and then play the waiting game. It depends on your area and whether houses in that price bracket are selling or not. Around here nothing seems to be selling!